This article analyzes the behavior of a producer of a legal addictive good (tobacco, alcohol or gambling) facing a demand with social interactions, especially a deterrence effect of heavy use on initiation. We simulate an epidemic model to estimate at what conditions it could be interesting for him to act responsibly, which means to reduce the escalation rate (from light use to heavy use). We draw conclusions in terms of the debate on corporate social responsibility discourse/practice in a neoclassical perspective.
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Find related papers by JEL classification: D21 - Microeconomics - - Production and Organizations - - - Firm Behavior M14 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Corporate Culture; Social Responsibility M37 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Advertising I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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